11.26.12
Procter & Gamble isn't the only company to draw shareholder ire. Timothy Stabosz, a 7.1% owner of Scott's Liquid Gold, and the largest unaffiliated holder of the company, announced the filing of a Form 13D amendment with the SEC. In the filing, Stabosz, who recently increased his position in the company from a previously disclosed 5.0%, indicates his full support of the pending transaction to sell certain company owned Denver real estate for $9.5 million, but also expresses concern about the potential use of the proceeds from said sale, considering the current CEO's dismal record of losing money for 14 out of the last 15 years.
Stabosz's 13D filing can be accessed at the following web link:
Stabosz's 13D filing can be accessed at the following web link:
Stabosz submitted a letter to the board of directors of the company, dated November 24, 2012. The letter can be accessed at the following link:
In the letter, Stabosz requests that the company meet in person with a handful of its largest shareholders, to discuss their opinion on the best disposition for the cash that will result from the closing of the pending real estate transaction. Stabosz also suggests a number of possibilities the company should consider for the cash, but most importantly, he insists that the company provide for those that want to "cash out" of their investment in Scott's Liquid Gold the means to do so.
Stabosz stated, "While I am gratified by, and fully supportive of, the announced transaction, I am very concerned about what our company's board may do with the pending cash influx. As such, and considering CEO Mark Goldstein's longstanding record of value destruction, it is important that the board of the company reach out to its outside shareholders, to determine what THEY want. It is my hope that by publishing my 13D filing and letter, the board will realize the importance of this mandate, and the need to seek to determine what its long suffering outside shareholder base wants."